Why does borrowing on-chain require overcollateralization? Many people can't answer!
Mainstream decentralized lending uses overcollateralization: the value you can borrow is less than the value of your collateral.
Your health factor fluctuates with prices: if the collateral price falls or the price of the borrowed asset rises, your health factor will decrease.
Don't invest money you've borrowed; the pressure can easily lead you to make bad decisions.
$AAVE 124.83（-7.35%）
Mainstream decentralized lending uses overcollateralization: the value you can borrow is less than the value of your collateral.
Your health factor fluctuates with prices: if the collateral price falls or the price of the borrowed asset rises, your health factor will decrease.
Don't invest money you've borrowed; the pressure can easily lead you to make bad decisions.
$AAVE 124.83（-7.35%）